Offering a unifying theoretical perspective not readily available in any other text, this innovative guide to econometrics uses simple geometrical arguments to develop students' intuitive understanding of basic and advanced topics, emphasizing throughout the practical applications of modern theory and nonlinear techniques of estimation. One theme of the text is the use of artificial regressions for estimation, reference, and specification testing of nonlinear models, including diagnostic tests for parameter constancy, serial correlation, heteroscedasticity, and other types of mis-specification. Explaining how estimates can be obtained and tests can be carried out, the authors go beyond a mere algebraic description to one that can be easily translated into the commands of a standard econometric software package. Covering an unprecedented range of problems with a consistent emphasis on those that arise in applied work, this accessible and coherent guide to the most vital topics in econometrics today is indispensable for advanced students of econometrics and students of statistics interested in regression and related topics. It will also suit practising econometricians who want to update their skills. Flexibly designed to accommodate a variety of course levels, it offers both complete coverage of the basic material and separate chapters on areas of specialized interest.

Estimation and Inference in Econometrics

This paper provides an introduction and "user guide" to Regression Discontinuity (RD) designs for empirical researchers. It presents the basic theory behind the research design, details when RD is likely to be valid or invalid given economic incentives, explains why it is considered a "quasi-experimental" design, and summarizes different ways (with their advantages and disadvantages) of estimating RD designs and the limitations of interpreting these estimates. Concepts are discussed using examples drawn from the growing body of empirical research using RD.

Regression Discontinuity Designs in Economics

Many empirical questions in economics and other social sciences depend on causal effects of programs or policies. In the last two decades, much research has been done on the econometric and statistical analysis of such causal effects. This recent theoreti- cal literature has built on, and combined features of, earlier work in both the statistics and econometrics literatures. It has by now reached a level of maturity that makes it an important tool in many areas of empirical research in economics, including labor economics, public finance, development economics, industrial organization, and other areas of empirical microeconomics. In this review, we discuss some of the recent developments. We focus primarily on practical issues for empirical research- ers, as well as provide a historical overview of the area and give references to more technical research.

/pdf/recent-developments-in-the-econometrics-of-program-42vjewfvjw.pdf

Recent developments in the econometrics of program evaluation

We investigate conditions sufficient for identification of average treatment effects using instrumental variables. First we show that the existence of valid instruments is not sufficient to identify any meaningful average treatment effect. We then establish that the combination of an instrument and a condition on the relation between the instrument and the participation status is sufficient for identification of a local average treatment effect for those who can be induced to change their participation status by changing the value of the instrument. Finally we derive the probability limit of the standard IV estimator under these conditions. It is seen to be a weighted average of local average treatment effects.

Evolution and Rationality Some Recent Game-Theoretic Results. Identification and Estimation of Local Average Treatment Effects

https://steadystate.org/wp-content/uploads/Stern_KuznetsCurve.pdf

The Rise and Fall of the Environmental Kuznets Curve

Estimating Worklife Expectancy: An Econometric Approach

Comparative politics and environmental taxation

Environmental Federalism: A Survey of the Empirical Literature Environmental federalism refers to the debate over the ‘optimal’ level of government at which to delegate environmental policymaking. Although this issue receives widespread attention across the globe, opinions run the gamut. The diversity of views plays out in practice as well as different federations have ‘resolved’ the issue differently. With the United States alone, environmental authority has oscillated between periods of relatively greater centralized and decentralized control. This article seeks to accomplish two objectives in order to advance the literature. The first objective is to provide a brief overview of the two primary theoretical frameworks – Tiebout (1956) and models of interjurisdictional competition – used to explore the effects of the decentralization of policy decisions such as taxes, expenditures, environmental standards, etc. The reason for doing so is to illuminate the issues that play a fundamental role in conclusions regarding the ‘optimal’ allocation of environmental authority. The second objective is to then provide a comprehensive survey of the relevant empirical literatures. By doing so, the goal is to limit the scope of the debate over environmental federalism moving forward, as well as make clear where the gaps in empirical knowledge exist. JEL Classification: H77, Q58

https://www.econstor.eu/bitstream/10419/90124/1/dp7831.pdf

Environmental Federalism: A Survey of the Empirical Literature

This study evaluated the effects of group-based credit programs in rural Bangladesh: Grameen Bank Bangladesh Rural Advancement Committee (BRAC) and Bangladesh Rural Development Boards (BRDB) Rural Development RD-12 program. The study determined the impact on childrens nutritional status. The article includes a description of economic theory of household allocation and the estimation and identification of structural equations with covariance restrictions based on regression errors with a factor-analytic structure. Credit programs are expected to improve nutrition by income and substitution effects and by increasing womens role and power in the household resource allocation process. All programs work with the rural poor. Data were obtained from a 1991-92 survey among 1798 households in 87 villages in rural areas. The sample included program recipients and non-program persons who were eligible for the program. The research design eliminated the unobserved who might have biased estimates of the impacts of these programs. The residual includes left-out household and individual level variables. The residual covariance matrix was restricted by nutritional status at two points in time and a factor-analytic structure. Results indicate a large positive statistically significant impact from womens credit programs on two measures of nutritional well-being. Mens credit had no significant impact. A 10% increase in credit provided to females increased the arm circumference of daughters by 6.1% and of sons and increased the height for age for boys and girls. Male or female credit did not affect Body Mass Index.

https://www.econstor.eu/bitstream/10419/102600/1/1998-04.pdf

Credit programs for the poor and the nutritional status of children in rural Bangladesh.

Utilizing parametric and nonparametric techniques, we asses the impact of a heretofore relatively unexplored ‘input’ in the educational process, time allocation, on the distribution of academic achievement. Our results indicate that school year length and the number and average duration of classes affect student achievement. However, the effects are not homogeneous — in terms of both direction and magnitude — across the distribution. We find that test scores in the upper tail of the distribution benefit from a shorter school year, while a longer school year increases test scores in the lower tail. Furthermore, test scores in the lower quantiles increase when students have at least eight classes lasting 46–50 min on average, while test scores in the upper quantiles increase when students have seven classes lasting 45 min or less or 51 min or more.

Daniel L. Millimet

Papers

Estimating Worklife Expectancy: An Econometric Approach

Comparative politics and environmental taxation

Environmental Federalism: A Survey of the Empirical Literature

Credit programs for the poor and the nutritional status of children in rural Bangladesh.

Time to learn? The organizational structure of schools and student achievement